The UK delivered 'tight' labour data for January this morning, allowing for another interest rate hike from the BoE this month. The unemployment rate remains unchanged at 3.7%, beating expectations for 3.8%. The number of jobs are up, average earnings are up and the figures are good news for the UK & £.
GBP v EUR & GBP v USD are both trading at the second best time since the end of January, so a 'good' time to exchange. However, the Spring Budget tomorrow could/should be beneficial to £ sellers. Markets are being cautious with what may be delivered, but we expect to see a positive outcome from Chancellor Hunt, who has brought much needed stability to the £ since being in the position.
The fallout from both lender banks in the US is still ongoing with the $ remaining under pressure. President Biden's speech yesterday was a convincing one, but it has done little to settle investors in what the Fed may do at the next meeting for that all-important interest rate decision. The collapse of the banks is being tipped as a micro-story and not a macro-story, however, what happened in 2008 is obviously still fresh in people's minds (and rightly so).